Jay data center project at former paper mill put on hold after developer backs out
The proposed data center project at the former Androscoggin Mill in Jay, Maine, has been put on hold after the developer, Sentinel, backed out. This decision follows Governor Janet Mills' veto of a bill that would have imposed a statewide moratorium on data centers. An advisory council has been established by executive order to address data center development in the state.
A significant data center project slated for the former Androscoggin Mill site in Jay, Maine, has been indefinitely postponed after the developer, Sentinel, withdrew from the plans. JGT2, the property owner, informed Jay officials of Sentinel's decision, though JGT2 is reportedly seeking other interested parties for the redevelopment of the Riley Road property.
This development comes shortly after Maine Governor Janet Mills vetoed LD 307, a bill passed by the Maine Legislature that would have enacted the first statewide temporary moratorium on data centers in the U.S. Governor Mills acknowledged concerns regarding the environmental impact and electricity rates associated with large-scale AI data centers but stated the bill's final version failed to include an exemption for the Jay project, which had strong local support. The Governor's veto was not overridden.
Following the veto, Governor Mills signed an executive order on April 29 to establish the Maine Data Center Advisory Council. This 15-member council is tasked with making recommendations on data center development in Maine, focusing on protecting ratepayers, maintaining electric grid reliability, minimizing environmental impacts, and promoting responsible economic growth. The Department of Energy Resources, in coordination with the Maine Public Utilities Commission, is also directed to identify and implement measures to shield ratepayers from increased energy costs due to data centers. The Advisory Council convened its first meeting on June 3 and is expected to submit its findings to the Governor by January 29, 2027.
Local advocacy groups, including Maine Conservation Voters and Our Power, expressed disappointment, highlighting potential negative impacts on water resources and electricity rates, with the U.S. Energy Information Administration projecting a 36% increase in Maine's electricity rates due to data centers. Our Power criticized Governor Mills' veto, claiming it was based on misinformation and left communities unprotected, and offered support to localities wishing to enact their own data center moratoriums.